Industrial sector top performer in year to June - REIWA Commercial Update

The industrial sector was the top performing commercial market for price growth in the year to June 2024, according to REIWA’s June WA Commercial Property Update.

The office market recorded the highest percentage increase in the number of sales.

REIWA CEO Cath Hart said the commercial update aimed to provide REIWA members and the broader public with information on the sales trends in the commercial property market.

“As WA’s peak industry body we have access to a large range of data and insights that real estate professionals and the broader community can use to empower their property decisions,” she said.

“We already publish monthly, quarterly and annual updates on the Perth residential market and a quarterly update for regional residential markets.

“People also purchase commercial property for their own use or as an investment. The commercial update is intended to inform owners and buyers about market trends and we will be publishing it every three months.

“For the most up-to-date, on-the-ground information regarding the performance of the commercial market in a particular area, we recommend speaking to a REIWA commercial agent.”

Industrial

“Our members report activity in the industrial sector remained strong over the past 12 months, with high demand and rising prices,” Ms Hart said.

“In many areas, the challenge was a lack of supply.”

The annual median sale price per sqm for the Perth industrial market was $2,389 at the end of June. This was 13.6 per cent higher than the year prior.

The Inner sub-region had the highest annual median sale price per sqm at $2,985.

A total of 1,067 industrial sales in the Greater Perth region have been recorded so far during the 12 months to June 2024. Compared to the previous year sales were down 5.3 per cent.

Across Perth, 25.3 per cent of industrial sales were priced between $250,000-$500,000.

The South East sub-region had the most sales, with 274.

Office

“According to our members, the performance of the office market varied across Perth and came down to the supply and demand for an area,” Ms Hart said.

“The market generally performed well in the suburbs, with the growing desire to work near home and the development of suburban villages to meet this trend.”

A total of 415 office sales in the Greater Perth region have been recorded so far during the 12 months to June 2024. Compared to the previous year sales were up 20.3 per cent.

Across Perth, 32.4 per cent of office sales were priced between $250,000-$500,000.

The Inner sub-region had the most sales, with 198, making up nearly half of all office sales.

The annual median sale price per sqm at the end of June 2024 was $4,130, which was 3.5 per cent lower than the year prior. 

The North West sub-region had the highest annual median sale price per sqm at $4,649.

Retail

Ms Hart said retail was a softer market, and also area-driven.

“Members report the Karrinyup and Joondalup shopping centres are considered among the best in Australia, and were trading well and finding it fairly easy to secure tenants,” she said.

“It was more challenging for outer-lying, older areas.”

A total of 167 retail sales in the Greater Perth region have been recorded so far during the 12 months to June 2024. Compared to the previous year sales were up 18.4 per cent.

Across Perth 31.7 per cent of retail sales were priced between $250,000-$500,000.

The Inner sub-region had the most sales, with 44.

The annual median sale price per sqm at the end of June 2024 was $4,395, which was 4.1 per cent lower than the year prior.

The Inner sub-region had the highest annual median sale price per sqm at $7,333.

Read the full commercial update here.